Gold Hedge Fund Sues Over London Fix

Mar 13 2014 | 12:51pm ET

Hedge fund AIS Capital Management has sued five banks for allegedly manipulating gold prices.

The firm alleges that Barclays, Deutsche Bank, HSBC Holdings, Bank of Nova Scotia and Société Générale “combined, conspired and agreed with one another and unnamed co-conspirators to manipulate the prices of gold and gold derivatives contracts.” The five banks set London’s benchmark gold fix price.

According to the suit, which seeks class-action status, the banks have been manipulating gold prices since 2004, and continue to do so. The illicit activities occur during twice-daily conference calls to set the price, during which “anomalous” price movements suggest manipulation, AIS said.

AIS’s Gold Fund lost 67% last year.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of